This was always the case though, so nothing new. Instead of seizing to sell, they seize to keep. The risk was always present, people were just ignoring it. The not your keys not your coins lesson comes one way or the other. If a person can't learn by reading, they will learn by losing.
It's incredible that even after 15 years since the existence of Bitcoin, a lot of those who own Bitcoin have not learned anything, so they still think that CEXs are some kind of bank where you can store (in a safe way) your cryptocurrencies and nothing bad can happen. Will people ever understand that no government in the world will accept Bitcoin for what it actually is, but rather they accept it by changing its purpose?
It will probably never happen, but as the old saying goes,
"While I breathe, I hope"People are actually aware of this but actually lots of people are lazy to transfer to those wallets which they have control. Since what they think its waste of time to do transfer when they want to trade their asset. They are so confident that nothing will happen on the CEX's they are using.
They only realize that they made huge mistake once they are affected with not only hacking issue but also government seizing those what they think illicit funds came from the exchange they capture.
Hopefully fully realize those mistakes they have done and don't give their full trust on CEX's even if they are what they called reputable platform.